Which of the following is true for a monopoly?
A. A price ceiling on a monopoly is always desirable and price does not equal marginal cost.
B. A price ceiling on a monopoly is always desirable.
C. Price does not equal marginal cost.
D. A monopoly always makes a positive profit.
Answer: C
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Which model highlights the effects of market power obtained from product differentiation?
a. The contestable market model. b. The Cournot model of oligopoly. c. The Bertrand model of oligopoly. d. The monopolistic competition model.
If two variables have the same rate of growth over the long run, their ratio will:
A) remain constant over the long run. B) initially decrease and then increase. C) decrease over the long run. D) increase over the long run.
The market demand curve for any good is:
a. independent of individuals' demand curves for the good. b. the vertical summation of individuals' demand curves. c. the horizontal summation of individuals' demand curves. d. derived from the firm's marginal cost of production.
U.S. productivity dramatically slowed down in 1973 until the early _________ (decade).
Fill in the blank(s) with the appropriate word(s).